Tax changes: You could be getting a bigger-than-normal refund. Here’s why

Federal tax changes are taking effect this year and it could reshape what millions of Americans owe. Supporters of the big beautiful bill say it delivers relief to families, seniors, and also business owners. Critics say that the benefits though aren't evenly distributed. Austin 25's Kale Thompson explains what it actually means for your wallet. Tax day is coming up and if you're working on your returns, we asked a certified public accountant to break down the key changes to see who stands to gain and lose the most. From churches to small businesses to seniors living on social security, this year's tax changes will put money back into some people's pockets. The part that helps out taxpayers is the limitation on deducting taxes on your itemized deductions went up from $10,000 to $40,000. That increase in the state and local tax deduction cap from $10,000 to $40,000 is a big deal for homeowners who itemize. I think we're going to save about $11,000 in taxes a year from that. Families with children are also seeing relief. The child tax credit increased from $1,700 to $2,200 per child, a big boost for families with several kids. Families who take the standard deduction can now deduct up to $1,000 in charitable contributions. Seniors 65 and older may qualify for an additional $6,000 deduction depending on income. It was the $2,000 additional standard deduction for 65 and older and then also the bonus deduction of up to $6,000 for those eligible making under $75,000. Seventy-three-year-old Karen Torley says it doesn't mean a refund, but it lowers what she owes and helps offset rising Medicare costs. Another headline change? No federal tax on tips for many service workers. Symonek says one of his clients is a hairdresser who earns 40% of her income with tips. She doesn't have to pay tax on her tips as long as she reports them properly. But not everyone benefits. Some W-2 employees still cannot deduct job-related expenses, and Symonek says misunderstanding withholding can lead to smaller refunds. Sometimes people say, well, I want to get a lot back at the end of the year because I use it to on vacation. Well, why don't you save it during the year to go on vacation and make some interest on it instead of letting the government hold it interest-free? Bottom line here, for some families, seniors and business owners, this year's tax changes could mean keeping more of what they earn. But tax experts also say now is the time to check your withholding before next April brings surprises.